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The Chief Executive Officer who has been appointed newly of a particular company tells you that he has to determine the required return on an
The Chief Executive Officer who has been appointed newly of a particular company tells you that he has to determine the required return on an unlevered equity on condition that his firm is able to deliver. Then he again told you that the required return on the firm's assets is 10% and 3% for cost of debt, which is based on a 50,000,000 borrowing that has been carried out quiet recently but the equity market value is not known. If the firm takes away all the debt, what will be its required return? Select one: O a. 10,0% O b. None of the above O c. 11.6 O d. 12.5
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